Do I need to set up a local entity abroad to employ/dispatch staff?

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

What’s an Employer of Record?

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

What is the Employer of Record liabilities?

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination procedures, etc.

How quick is it possible to expand abroad?

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

Startups

Are you involved in a startup that wants to operate or expand into multiple markets? Do you want to reach consumers worldwide, but you’re concerned about the level of capital needed and size of the company structure requirements necessary to sustain your operations long-term?

Risk is an inherent part of any startup. However, an experienced global PEO or EOR partner can help to reduce those risks by allowing you to hire and manage employees worldwide without going through the hassle and red tape typically related with foreign company incorporation.

INS Global reduces the costs and setup time associated with expansion by helping your company to hire diverse talent overseas. This can be done without requiring separate legal entities in the markets you wish to enter.

5 Advantages of PEOs and EORs for Startups

Assured Legal Compliance and Risk Reduction

Many startups lack the resources or structure to hire employees full-time, so they miss out on opportunities to hire the best. A PEO gives you all of the systems you need to hire who you need while also providing you with the legal expertise necessary to feel secure and avoid problematic or complex regulations.

Reduced Cost and Time

Being able to take advantage of opportunities is necessary for your success. With a PEO or EOR partner, you can enter new markets in a matter of days for a fraction of the time and cost it would otherwise require.

Scalable Growth

Instead of needing all of the internal systems and structures required to run an international business from day one, a PEO or EOR agreement builds with you as you grow and expand.

Talent Opportunities

A PEO or EOR allows you to hire worldwide without requiring a physical presence in your target market. Should you want to create a team that benefits from the diversity available to today’s remote workers, INS Global is here to give you the tools and systems to ensure payroll and total regulatory compliance.

Access to Expertise

As startups want to expand, hiring employees with the right experience in new markets can be a risky but necessary exercise. It can be helpful for companies looking to expand their operations to multiple markets at once to have one global partner with the knowledge of local benchmarks and best practices you need to succeed. INS Global has expansion specialists from all over the world who can put their skills and experience to your use in achieving your goals.

Assured Legal Compliance and Risk Reduction

Reduced Cost and Time

Scalable Growth

Instead of needing all of the internal systems and structures required to run an international business from day one, a PEO or EOR agreement builds with you as you grow and expand.

Talent Opportunities

Access to Expertise

grow efficiently today

See What Our Clients Say

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

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